Like most things in 2020, COVID-19 had a significant impact on global mergers and acquisitions. Initially, the market was at a standstill. Most investors paused all work on new deals, especially those first few months of the pandemic. But, as we saw with the market as a whole, the M&A market gradually reactivated itself.
After investors got a foothold on the new normal, things unfolded quite quickly. With much more information and management experience already being gained at the beginning of the summer than the pandemic. It has become significantly clearer: the main directions, what costs involve adaptation, the sectors with fewer chances of return, the main growth opportunities, the areas of stable risk, what strategies do the main trading partners pursue, etc. This was especially obvious in the number of projects negotiated.
However, the recovery was not the same for all industries, some of which remained permanently affected. Informed M&A advisory firms know that even in sectors that benefit from the pandemic, the implications can be nuanced, depending on the type of activities in question, requiring a thorough knowledge of different situations and regulations.
Of course, 2021 will be another complicated year. However, it is quite clear that many economic agents have learned useful things during this period and are better prepared to assume a greater degree of complexity and uncertainty in development decisions.